Kraft, Food Lion Talk Data Sharing
Both retailers and suppliers see the value of data sharing and recognize the return on investment it provides to each of them, according to results of the inaugural 2010 Retailer/Supplier Shared Data Study, produced by CGT and RIS News. Yet, both trading partners realize there is still a long way to go to fully reap the benefits of an enterprise-wide partnership.
On October 7, 2010, Steve Steutermann, research director, Gartner, kicked off a CGT web seminar titled "Creating One Version of The Truth: Key Takeaways from the 1st Annual Retailer/Supplier Shared Data Study" by analyzing the results of this breakthrough new study.
"When we begin to look at the study results, clearly what we see is that suppliers have been more active in data sharing than retailers. Nearly one-quarter of suppliers receive downstream data from at least one retail partner, and 22 percent receive data from more than 10 retailers. That's good, but clearly there is still a long way to go in data sharing," said Steutermann. "When you look at retailers, 31 percent do not share data with suppliers, and that's very troublesome."
After an in-depth analysis of the study, the mic was handed over to executives from Kraft Foods, Delhaize Group (Food Lion) and Bozzuto's, which all candidly shared their real-world examples and successes of data sharing.
First up, John Sacksteder, director Customer Innovation Center of Excellence, Kraft Foods, provided details into Kraft's Integrated Demand Signal initiative, which focuses heavily on integrating daily point-of-sale data to drive results in retail execution, forecasting and replenishment, among other processes.
"The key to success for us is collaboration. You have to do things right up front. You have to get the data in and harmonized so that you can really leverage it," he advised. "Once you get it, you can then provide analytics and insights. But, if you have a partner that isnâââ¬ââ¢t working with you to act upon those, then itâââ¬ââ¢s really just a bunch of data to have data. The collaboration to put in a process that drives change is what has really been most important."
Next, attendees heard from Jeff Schall, supply chain manager, Food Lion (a banner of Delhaize America), who explained his company's Vendor Pulse program, which enables greater collaboration through the daily sharing of item/store/day level data and the score carding to key supply chain metrics.
Through Vendor Pulse, Delhaize was able to improve in-stock positions and increase sales through better forecasted demand and partnering with category teams to force out store-specific quantities, among other benefits. "We knew that information was power and sharing that information and collaborating together was going to be the key to success."
Steve Methvin, vice president, eCommerce and Retail Technology, Bozzuto's, a total service wholesale distributor of food and household products to retailers in New England, explained how his company helps its customer compete through the use of a multi-facet portal called SCORE (Supply Chain Optimization and Retailer Efficiency).
"The growth that weâââ¬ââ¢ve seen since 2008 bucks the trend in the industry and a lot of it has been attributed to our ability to quickly bring new customers into the Bozzutoâââ¬ââ¢s family quickly by sharing data and the transparency of our supply chain," said Methvin. "Data sharing has been a point of difference for our customers."
The aforementioned points are just a small fraction of the effective data sharing strategies that were shared during this webinar.Click here to listen to the web seminar on demand and get an insiderâââ¬ââ¢s look on how your company, whether you are a retailer or a manufacturer, can get on the joint path to yield true return on investment.